8-KAcquisitions & DispositionsExhibits & Filings

GLOBAL PAYMENTS INC 8-K Report, Acquisition Completed (Jul 2, 2008)

Filed July 2, 2008For Securities:GPN

Summary

Global Payments Inc. (GPN) has announced the completion of a significant acquisition, purchasing a 51% stake in HSBC Merchant Services LLP for $439 million in cash. This transaction, effective June 30, 2008, expands GPN's reach into payment processing services for merchants in the United Kingdom and globally for internet-based businesses. The acquisition was financed through a mix of existing cash, a new $200 million term loan, and its revolving credit facility. This strategic move positions GPN to capitalize on the growing demand for payment processing solutions in key international markets. While the immediate financial statements for the acquired entity are not included in this filing, GPN has committed to filing them via amendment within 74 days. Investors should monitor the integration and performance of HSBC Merchant Services LLP as it represents a substantial addition to GPN's operational footprint and future revenue potential.

Key Highlights

  • 1Global Payments Inc. acquired a 51% controlling interest in HSBC Merchant Services LLP.
  • 2The acquisition was completed on June 30, 2008.
  • 3The total purchase price for the stake was $439 million in cash.
  • 4HSBC Merchant Services LLP will provide payment processing to UK merchants and global internet merchants.
  • 5The acquisition was funded by a combination of cash, a new $200 million term loan, and existing credit facilities.
  • 6Financial statements for the acquired business will be filed as an amendment within 74 days.

Frequently Asked Questions

The main event is the completion of Global Payments Inc.'s acquisition of a 51% controlling interest in HSBC Merchant Services LLP for $439 million in cash.

The acquisition was funded using a combination of Global Payments Inc.'s existing cash reserves, proceeds from a previously announced $200 million term loan, and borrowings under its existing revolving credit facility.

This acquisition significantly expands Global Payments Inc.'s presence in the United Kingdom and its capabilities in serving internet merchants globally, tapping into growing international payment processing markets.

Global Payments Inc. has stated that the required financial statements for HSBC Merchant Services LLP will be filed by amendment within 74 calendar days of this Form 8-K filing.